Seaport Research upgrades Reddit stock to Buy, sets $165 target

Reddit's stock was upgraded from Neutral to Buy by Seaport Research Partners, with a new price target of $165, following strong first-quarter revenue and EBITDA growth. Despite a recent sell-off caused by slowing user growth attributed to changes in Google's search algorithm, analysts argue these concerns are largely overblown and see them as a short-term headwind. Seaport's Aaron Kessler remains optimistic about Reddit's long-term prospects, citing its strong financial performance, status as a major internet destination, and significant opportunities for revenue and monetization growth, especially internationally. Reddit's appeal to advertisers and robust margins further support a positive outlook. The analyst encourages investors to take advantage of the recent pullback, expecting solid long-term user and revenue growth.